Interview with Charis Floudopoulos (capital.gr)
In his interview for Capital.gr, Leonidas Bakouras, the General Manager of EDA THESS, states that the company is facing energy developments with robust results and targeted investments. He considers this a vote of confidence for the economic environment of the Greek economy, adding that the energy industry's reflexes faced with the challenges posed by the coronavirus were swift. The goals of the investment programme are outlined below.
Despite adverse conditions, EDA THESS showed a strong growth rate during the first half of 2020. The impressive results achieved affirm the integral planning for the strategic growth of the Company, and guarantee the implementation of all projects included in the investment programme within schedule. At this point, I must note that we leveraged the reduced circulation measures in order to complete construction activities. At the same time, we created suitable mechanisms, while complying with all protection measures, to allow for the continuous and safe operation of the Company.
The financial results achieved during the first half of 2020 also underscore the robustness of EDA THESS, with turnover of over EUR 39.15 million, marking a 7.7% increase, while EBITDA amounted to EUR 30.54 million, achieving a 4.1% increase over the corresponding period last year. The Company's net profit after tax appear even better, standing at EUR 17 million, almost 8.3% greater than during the first half of 2019.
It has become established that we remain consistent with our plan and adhere to the implementation of our strategic goals, resulting in a sustained upward curve.
In my view, the strong investor interest in DEPA Infrastructure is an indication of confidence in our country's economic environment, which is starting to attract business ventures interested in investing capital. At the same time, it underlines the growth prospects of the energy industry and distribution, in particular, and may have a positive impact on the country's economy.
I believe that developments cannot effect changes to the operation of EDA THESS, as the Company has been carrying out investments on technical-financial criteria since its inception, focusing on network efficiency and the optimisation of its services. Moreover, the Company has adopted modern administration practices for the development of its employees’ skills through an evaluation system and continuing education programmes.
Throughout its history, EDA THESS has been characterised by a long-term commitment to the implementation of investments with long-term yields, high technical know-how, and stable and effective administration.
With regard to the privatisation project, specifically, throughout the duration of the Project, EDA THESS has made sure — as is the case with all its business activities — to work efficiently with the Shareholders, the competent Consultants and stakeholders, to perform the obligations deriving from the project underway with consistency, and to facilitate the procedures required for its completion.
The European Union, adhering to climate neutrality, has established its strategy for energy transformation — with a view to 2050 — in order to achieve its goal of a cleaner planet and a strong circular economy. One of the main pillars of this strategy is the promotion of clean fuel, such as recyclable gases (green hydrogen, biofuel and biomethane). At the geopolitical level, hydrogen can reduce energy dependency and contribute to the diversification of the European Union's energy sources.
Greece holds an advantageous position in terms of promoting energy directions such as green hydrogen, as it can produce it through developing RES, utilising the resulting surplus energy — through electrolysis — and feeding it into the Natural Gas Networks, using suitable technologies which are being developed. This fact, in addition to the reduction of greenhouse gas emissions from the consumption of the final NG-Hydrogen mixture, can contribute to the creation of a storage system, thus offsetting possible seasonal fluctuations in energy demand, either in the medium term or combined with storage batters in the short term.
Interoperability between Natural Gas networks and renewable gases (biomethane, renewable hydrogen) must be brought to the fore on the path to climate neutrality by 2050, ensuring the achievement of climate goals in 2030.
Of course, it must be stressed that in order to implement the foregoing successfully, it is crucial to ensure, both at the European level and in Greece, that the institutional, statutory and regulatory framework be put in place in good time, including the extent of feed-in into the distribution networks and relevant market mechanisms, and that the relevant investments are facilitated, primarily aiming at financial effectiveness, which will benefit consumers.
It is certain that natural gas is the dominant ‘bridge fuel’ for energy transformation, in the context of phasing out lignite and diversifying the country's energy mixture. Consumption is expected to increase over the coming years, with penetration in additional areas, promotion of gas fuel use, increase of natural gas electricity generation, use of LNG and CNG technologies, and implementation of major natural gas infrastructure projects.
As Distributors, we intend to make NG Networks ‘smart’ in order to maximise the future incorporation of renewable gases, so as to achieve resilience for our energy system.
This is a far-sighted Development Programme of targeted investments of over EUR 145 million, which was prepared according to strict economic, commercial, technical and environmental criteria so as to ensure the continued robust growth of EDA THESS over the next 5 years.
More specifically, the 2020–2024 Development Programme provides for the expansion of the low- and medium-pressure network by 510km and the increase of natural gas penetration of licensed areas from 61% today to 74%. At the conclusion of the investment programme, active connections are expected to number 450 thousand, while the volume of natural gas distributed is expected to exceed 523 million cubic metres in 2024.
Furthermore, the Company's Programme includes investments for the completion of its digital transformation, such as the complete modernisation of the Company’s Information Systems at the software and infrastructure level, and the installation of smart Metering Systems for end consumers, with a focus on safety, distribution network efficiency and environmental protection.
Greece responded decisively and organised its defences in good time against the crisis wrought by the pandemic, the consequences of which are even harsher considering the economic crisis plaguing our country over the last years.
Of course, I would note that the Greek energy industry's reflexes were swift and that it quickly absorbed any negative impact.
As the pandemic persists, it is crucial that we plan for better planning, with the environment at the focus of public and private strategies. Developments in the energy industry (e.g. privatisations, major infrastructure projects, etc.) have overcome the deceleration stage and are now proceeding normally.
One of the main axes is green transition and the new energy strategy, given that the European green Deal constitutes Europe's new developmental strategy. The transformation required to ensure net zero emissions will create tremendous value creation opportunities for those who can offer solutions.
Furthermore, the investments that will take place in Greece as a natural result of the EU's broader strategy for energy integration and the environment will contribute to further growth, job creation and business sustainability in the energy industry for the coming years.
EDA THESS, in turn, is an active member of European associations and bodies; by setting goals and adopting strategies, we aim at and contribute to the promotion of green, viable and sustainable growth.
I must note that, despite circumstances, EDA THESS remained in seamless operation throughout the range of its activities, whilst ensuring the protection of its personnel, associates and consumers. By applying a special business activity plan and faithfully adhering to our planning, we remained a step ahead of developments.
The results to date prove our robust performance, which is due to a number of factors making up our success. Firstly, our effective administration and our commitment to our goals have a catalytic effect on fully implementing the Development Programme.
At the same time, we are carrying out major investments in terms of infrastructure construction as well as in human resources. We are placing emphasis on providing top-quality services to consumers and we are making a decisive contribution to the growth of the market. We always safeguard our shareholders' interests, and create a healthy work environment for our people.
Our position has been acknowledged at the international level and our membership in the powerful European organisation GD4S has enabled our active participation in shaping the policies that concern the energy market at the European level.
